45-4-1203 - Powers.

45-4-1203. Powers.

The corporation may:

     (1)  Enter into contracts of any nature;

     (2)  Sue and be sued;

     (3)  Adopt, use and display a corporate seal;

     (4)  Receive the payment from its members for members' shares, members' deposits, special accounts and certificates;

     (5)  Make loans to credit unions, associations of credit unions, and corporations, organizations, or agencies owned or operated by a credit union or credit unions;

     (6)  Receive money or other property from credit unions, associations of credit unions, and corporations, organizations, or agencies owned or operated by a credit union or credit unions;

     (7)  Invest its funds, not otherwise required for lending to its members, in the following manner:

          (A)  In any legally chartered bank or trust company supervised by a state or federal bank regulatory agency;

          (B)  In any state or federal savings and loan association or corporation;

          (C)  In any agency or association organized either as a stock company, mutual association, or membership corporation; provided, that the membership or stockholders, as the case may be, of the agency or association are restricted to credit unions, or organizations of credit unions; and provided further, that the purposes for which the agency or association is organized are designed to service or otherwise assist credit union operations;

          (D)  In obligations of or securities fully guaranteed as to principal and interest for the government of the United States or of the state of Tennessee;

          (E)  In any bonds or other obligations issued by the Tennessee valley authority pursuant to the Tennessee Valley Authority Act of 1933, compiled in 16 U.S.C. §§ 831-831dd);

          (F)  In investments authorized under § 35-3-120, and in any investment that is lawful for federal credit unions chartered under U.S.C., title 12;

          (G)  In obligations permitted for state banks under § 45-2-607(a)(4) and (a)(5); and

          (H)  In other investments not specifically enumerated in this subdivision (7) that may be permitted by rule or regulation of the commissioner;

     (8)  Borrow money from any source upon terms and conditions that the directors determine. The corporation shall not be subject to the limitations of § 45-4-502(a);

     (9)  Purchase in its own name, hold and convey property of any nature;

     (10)  Receive by assignment or purchase, from its member credit unions, any property of any nature owned by those member credit unions;

     (11)  Sell, assign, mortgage, encumber or transfer property of any nature;

     (12)  Adopt and amend bylaws for carrying out the purposes of this section;

     (13)  Extend to each member credit union discounts, advancements and accommodations that may be safe and reasonably made with due regard for the claims and demands of other member credit unions and the maintenance of sound credit conditions. It may further prescribe standards for defining the conditions under which discounts, advancements and accommodations may be extended to member credit unions;

     (14)  Manage and operate other credit unions; and

     (15)  Undertake other activities, not inconsistent with this part, that the bylaws may provide.

[Acts 1981, ch. 76, § 3; 1984, ch. 714, § 3; 1986, ch. 558, § 5; 1995, ch. 23, § 1.]